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... leading to a strong drop in first quarter;
partial recovery expected by year year-end
Japan Luxury by Quarter
(2010E -2011F)
Positive performance of
department stores prior to
earthquake
Japan: Earthquake Effect
-5%
• March 11
northern regions
th earthquake devastated Japan’s
northern regions
• Nuclear risks forced luxury brands to close
Tokyo stores for over 10 days
- Stores in the Osaka area not really impacted and
maintaining previous year performances
• Strong performance of luxury brands
immediately after store re re-openings
• First signs of recovery are expected starting
in the 3
GDP due to the reconstruction
rd quarter, also fueled by growing
GDP due to the reconstruction
• Impact of earthquake also felt in mature
markets: Japanese consumers account for
~5% of EU sales through tourism
• Long Long-term impact not expected to be
significantly negative
- Previous natural disasters (e.g. Kobe earthquake of 1995)
had low impact on luxury
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